Turner may terminate distribution contract with SABe TV

Turner International plans to terminate its distribution contract with SABe TV for non-payment of dues for the last six months. According to the agreement, Turner was to receive payment every month from SABe TV for distributing the Hindi entertainment channel.

Friction between the two companies started a few months back. Turner was not aggressively pushing the distribution of the free-to-air Hindi channel because of the uncertainty over payments. Though no formal notice was communicated, the feeling was that the two partners would separate.

According to the company "SABe TV and Turner International have agreed to issue a joint press release in a day or two."

According to industry sources, though Turner is distributing the channel as of now, the company had sent the termination notice. Turner was responsible for seeding the boxes and increasing the reach of the channel in the country. The agreement between Turner International and Sri Adhikari Brothers Television Network for distributing SABe TV was for a period of two years.

SABe TV had turned to Turner for enhancing the reach of the channel by 100 per cent. Besides, it added a brand value association. For Turner, it was an opportunity to get associated with a Hindi general entertainment channel. Turner distributes its own channels like CNN and Cartoon Network.

Sources said distributors had more incentives to distribute the Turner-owned channels than SABe TV boxes. With SABe TV being free-to-air, they could not get a share of the subscription revenue but a one-time commission.